Former Cred Executives Indicted for Wire Fraud and Mismanagement
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Three former Cred executives, including co-founder Daniel Schatt, are indicted on charges related to wire fraud and financial mismanagement. A defunct crypto lender, Cred, filed for bankruptcy in 2020 and faced liabilities between $100 million to $500 million. However, the company’s failure led to mishandling of funds and undisclosed and risky lending practices. Current allegations include diverting funds to a Chinese micro-lender and misleading marketing via retail exchange Uphold. Also, a lawsuit against Uphold was dismissed, but there’s a pending class action suit from the creditors.
